Changing the rules for disclosing banking secrecy will undermine confidence in the entire banking system - Concord Bank co-founder Sosedka

Changing the rules for disclosing banking secrecy, as proposed by the National Bank of Ukraine, will increase the risk of personal data leakage and may undermine confidence in the banking system in the country. This opinion was expressed in an exclusive commentary to UNN by  co-founder of JSCB Concord JSC Olena Sosedka, who is included in the ranking of the 50 most influential women in FinTech as a co-founder of the first Ukrainian fintech ecosystem ConCord Fintech Solutions.

Consideration of the idea of disclosing banking secrecy in Ukraine has raised concerns among experts and citizens who fear that it could undermine the confidentiality of financial information and increase risks to personal security. It is important to take into account international experience: in the US and Europe, strict conditions and legal frameworks regulate access to such data, ensuring protection against misuse. Switzerland, known for its banking secrecy, has examples where disclosure is possible only through the courts. This underscores the need for clear rules and sanctions for banking information leaks to maintain confidence in the financial system

According to her, in Ukraine, as in other countries, banking secrecy can be disclosed by means of a court decision. This allows for the protection of citizens' rights.

However, a draft resolution of the National Bank of Ukraine proposes to give law enforcement officers the ability to access banking secrecy without a court order. According to Sosedka, this could lead to an increased risk of personal data leakage.

"This change is a cause for concern, as data leakage will be possible under any request from law enforcement to disclose banking secrecy, which undermines confidentiality and trust in the banking system," Sosedka added.

She reminded that in all developed democratic countries, the human right to privacy is based on three main pillars: banking, legal and medical secrecy. According to Sosiedka, these elements are key to protecting personal data and provide the basis for trust in the relationship between clients and professionals in these industries.

Recall

The National Bank of Ukraine has proposed for public discussion amendments to the Rules for the Storage, Protection, Use and Disclosure of Bank Secrecy, approved by the NBU Board Resolution of July 14, 2006.

According to the regulator, the changes are related to the need to bring the rules for storing, protecting, using and disclosing banking secrecy in line with the Law of Ukraine "On Banks and Banking Activities" and to improve the procedure for disclosing information constituting banking secrecy to the National Bank of Ukraine.

Viktor Bobyrenko , head of the expert group of the Bureau of Policy Analysis, in a comment to UNN, noted that the opening of banking secrecy to the tax authorities would lead to a decrease in the number of money transfers, including donations.